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Pink Slip, Red Flag

By

Annelena Lobb

Updated Jan. 4, 2008 1:16 p.m. ET

Government data today showed a December jump in unemployment and only a trickle of new jobs. Does it mean the U.S. economy is fated for a recession?

Maybe. A chorus of economists said the jobs report indicates that recession risks are climbing. Even if the economy skirts recession -- defined as two quarters of negative growth in gross domestic product -- it could be hitting a very slow stretch as weakness in the housing and manufacturing persists. The unemployment rate last month rose to 5% from 4.7%. Single-month gains are...